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UNEMPLOYMENT is placed to drop more with how many job vacancies climbing to record levels, fuelling speculation of another interest rate rise.
National job vacancies in the 3 months to August rose 2.9 percent, seasonally modified, in line with the Australian Bureau of Statistics.
Work vacancies increased by 11.9 % in the entire year to August.
CommSec equities economist Martin Arnold said with job openings now at an archive high, the unemployment rate was set to fall below 4 per cent - from its current 4.3 per cent - as business conditions encouraged managers to seek more staff.
"The Australian economy is saving solid growth and business problems are nearly as effective as they get," he explained.
The effectiveness of the economy led a frustrated John Howard to state the public was failing woefully to give the government credit for economic management.
"I think there is a view in the neighborhood... Probably a substantial number that, for somehow or still another, our economic strength and our economic stability and growth is occurring naturally, that the economy is on autopilot," the Prime Minister told a forum at Ocean Grove on the coast yesterday.
He explained this was one of the reasons why the government was performing so poorly in the general public opinion polls: "I think people are needs to get the Australian economy for granted."
Seasonally-adjusted work vacancies totalled 172,700 in the 3 months to August.
Mr Arnold said there have been under three unemployed people for every single vacant job, the cheapest level on record.
Business services has been one of the best development areas, with 45,200 openings, 28.4 % greater than a year before.
The amount of jobs vacant in the communications industry has significantly more than doubled to 2800 in the same time.
There clearly was strong need for labour in the design, retail trade and transport companies.
Parts that seem to be less desperate for staff include hospitality, adventure and personal services.
People sector is continuing to grow, with the number of vacant jobs 11.8 % more than this past year.
In the year to August, job vacancies in the increase state of Western Australia were up by 31.8 per cent, unadjusted, used by the ACT, which was up 31 per cent.
Only Queensland had a drop, with year-on-year openings down 3.3 %.
Matthew Johnson, the senior economist at specialist ICAP, said the increase in jobs opportunities must provide employment growth in excess of 2 per cent.
"This means that unemployment will probably fall lower, and that everyone from the Reserve Bank down will continue to worry about wage-push inflation," he explained.
Large job opportunities and low unemployment is just a traditional formula for inflation, with a limit to exactly how many opportunities may be filled.
There has, so far, been number proof of wage inflation, with the average price of work increasing broadly in line with costs in the economy. Another inflation figures are published on October 24.
UBS primary economist Scott Haslem said the progress in job opportunities would donate to higher inflation in the final months of 2007. He expected the Reserve Bank could increase interest levels in February 2008 to prevent inflation planning above the RBA's 3 per cent target range.
However Mr Arnold said the increase in labour supply, coming from migration, would not produce wages pressures. found it
